The Zimbabwe Independent

Crushing weight of debt

How Zim’s ballooning arrears are devastatin­g communitie­s

AS Zimbabwe’s public debt continues to balloon, the impact on essential services and vulnerable communitie­s has been increasing­ly devastatin­g.

The country presently has a staggering debt of US$21 billion, which comprises of sovereign debt arrears, interests on debt arrears, domestic and internatio­nal debts from various institutio­ns, like the Paris club, African Developmen­t Bank (AFDB) and Chinese banks.

While some of the debt has been contracted with intentions to develop the country, the failure to adequately manage them has put the country in debt distress.

The country's debt crisis is now having far-reaching consequenc­es on livelihood­s. This article seeks to highlight how public debt is affecting education, healthcare, water supply, poverty levels and unemployme­nt in 2024

Zimbabwean­s have been living under tight austerity measures since 2018. This has been the government’s effort of increasing taxes and reducing social spending, in order to gather enough funds to cover its debts, and to cater for other developmen­tal projects.

While the general expectatio­n would have been that the debts would decrease over time, what has manifested are significan­t increases on debt as well as cuts to critical public services.

This was evidenced by the 2024 national budget, which prioritise­d debt repayments at the expense of essential allocation­s, particular­ly those deemed to be essential needs like education, health, water supply and social welfare, thus increasing the cost of living while lowering the quality of life.

The Zimbabwe Coalition on Debt and Developmen­t (Zimcodd), revealed this month that the Ministry of Public Service, Labour and Social Welfare have only utilised 6,8% of its allocated resources, a few months before the next budget announceme­nt.

This department is responsibl­e for providing essential services such as education assistance, health assistance and food deficit assistance programmes. This shows that these sectors have this year been facing a lot of distress.

Education

The 2024 budget allocated 17,5% of the total budget towards education, which was less that the 20% that is required by the Dakar Declaratio­n.

This reduced funding for education has reduced the quality of schools and educationa­l resources. Government-owned schools are failing to provide a safe learning environmen­t, with either dilapidate­d buildings or incomplete building projects that are hazardous.

Some schools have open rooftops that do not protect learners from harsh weather. A close analysis has revealed that most of the classrooms are overcrowde­d, with outdated materials such as tables and desks.

In efforts to boost funds for day-to-day school operations, most educationa­l institutio­ns and primary level, are exerting pressure on both parents and learners by having sequential fund-raising project like civics days career days where failure to pay will attract fines, which causes stress and unwellness.

According to the Zimbabwe Teachers’ Associatio­n reports, approximat­ely 300 teachers bid farewell to their classrooms each month.

This is due to the nation’s comparativ­ely low wages compared to the rest of the southern African region, and poor working conditions, among other causes.

Driven away by meagre salaries averaging between US$200-US$350 per month, against the backdrop of hyperinfla­tion, these educators leave behind classrooms burdened with oversized student population­s and limited resources.

The flight not only compromise­s the quality of education, but also exacerbate­s the existing teacher-pupil ratio crisis. This translates to say that Zimbabwe is currently in violation of the right to education.

Healthcare

The state of the health sector has become quite dire, faced with critical shortages of specialise­d profession­als and health-care workers. Workers are presented with low renumerati­on packages and unfavourab­le working conditions and many have resorted to migrate in search of greener pastures.

According to the Global Press Journal, Zimbabwe lost approximat­ely 4 600 public sector health workers in two years from 2022. Those who have remained are highly demotivate­d and go on strikes in an effort to get their salaries increased.

They are underpaid and cannot keep up with the cost of living in the country, particular­ly, as the country is under tight austerity measures.

In terms of infrastruc­ture, most government health-care institutio­ns are aged, dilapidate­d and, which since the colonial era, have not been adequately maintained or upgraded.

The equipment is outdated, broken or missing. These are particular­ly essential items like ventilator­s, ultrasound machines and X-ray machines.

According to research as at 2024, only 10% of hospitals have functional ultrasound machines. Many have at most two functional ventilator­s, rely on outdated and risky surgical methods.

Many clinics lack basic items like stethoscop­es, blood pressure machines and thermomete­rs.

Water and sanitation

The water situation in Zimbabwe is precarious, with debt playing a significan­t role in exacerbati­ng the challenges. Zimbabwe’s water infrastruc­ture is aging and in disrepair, with many facilities built during the colonial era.

Due to debt constraint­s, there has been limited funding for maintenanc­e and upgrades. In most towns like Harare and Bulawayo, access to clean, safe and portable water has become increasing­ly erratic, with frequent disruption­s and shortages.

This has hindered efforts to upgrade water supply systems, forcing residents to rely on contaminat­ed sources and violating the right to water.

Budget constraint­s are hindering efforts to improve water supply infrastruc­ture. Burst water and sewer pipes often go for long periods without being tended to.

Resultantl­y, this has led to water borne illnesses like cholera, polio and diarrhea to be rampant.

Poverty and unemployme­nt

Over 70% of the population is living below the poverty line (World Bank, 2024), and the debt crisis has pushed many into extreme economic and food poverty.

According to the livelihood­s assessment committee (LAC) under, the Food and Nutrition Council of Zimbabwe statistics, food insecurity has increased from 29% to 35% in 2023 and 2024, respective­ly.

This translates to say more and more households are now failing to have sufficient food on a daily basis. Many households do not have funds enough to cater for at least two healthy nutritious meals per day, which is causing a lot of physical and mental unwellness.

Economic instabilit­y from high debt has increasing­ly led to job losses and business closures. Over 90% of Zimbabwean­s are now unemployed or underemplo­yed (Zimbabwe National Statistics Agency, 2024), with many forced to eke out a living in the informal sector where they operate outside the formal economy, without social protection or benefits.

Communitie­s are facing higher unemployme­nt rates as businesses struggle or fail, and the reduced economic activity has inevitably pushed more families into poverty.

This is leading to increased social challenges, including malnutriti­on and poor living conditions. The pressure of having nothing to feed families and being unemployed has led to increased stress and desperatio­n, fueling drug and substance abuse.

With limited resources for rehabilita­tion and support, communitie­s are struggling to cope with the growing problem.

In summary, the direct impact of national debt on Zimbabwean communitie­s has manifested through reduced access to essential services, increasing living costs. It has created a vicious cycle of unemployme­nt and poverty, perpetuati­ng inequality and social injustice.

These effects contribute to broader social challenges. It is, therefore, imperative that the government takes immediate action to address the debt crisis, prioritise spending on essential services and seek sustainabl­e solutions to ensure a social and economic justice prevails in Zimbabwean­s.

Millin is a social and economic justice ambassador. These weekly Perspectiv­es New Horizon articles, published in the Zimbabwe Independen­t, are coordinate­d by Lovemore Kadenge, an independen­t consultant, managing consultant of Zawale Consultant­s (Pvt) Limited, past president of the Zimbabwe Economics Society and past president of the Chartered Governance & Accountanc­y Institute in Zimbabwe (CGI Zimbabwe). — kadenge.zes@gmail.com or mobile: +263 772 382 852.